News editor, foreign desk

More than a decade after the emergence of the e-commerce industry almost half of Australian small-and medium-sized businesses still do not have a website, according to an industry survey.

The share of SMBs with a website rose from 35 to 52 per cent in the past year, the remain businesses without a website risk losing consumers who are increasingly turning to the internet for shopping and information.

"Having a website is as important for a business today as having a phone,” said Claire Hatton head of local business for Google Australia, who commissioned the poll. “Millions of Australians are looking online for local business information, and yet almost half of Aussie businesses are invisible to them, because they don’t have a website.”

The internet, which increases the reach of small business, has begun to dispel the dominance of major bricks and mortar retailers as many struggle to adapt their business models for an online environment, leaving a gap for internet-savy small businesses to fill.

As retail trade weakened through 2011, consumer saving increased and spending shifted to more services and online purchases. Last year was the worst for retail sales since 1984, according to Australian Bureau of Statistics data.

To tap into one of the largest areas of business in the Australian economy and reach new customers, large web search and social media companies like Google and LinkedIn have increased their focus on small businesses.

LinkedIn, whose membership topped three million Australians this month, has created a small business hub on its website that lets business professionals swap information and expand their influence among peers.

“By participating in LinkedIn Groups and Answers, SMBs are gaining industry insights and positioning themselves as subject-matter experts,” said company spokeswoman Tara Commerford.

Using business-focused social media allows “small businesses to build their online brand, network with other professionals, generate new business leads and hire talent,” said Ms Commerford.

The Google survey, covering the small and medium business sector, was conducted by TNS in February.